Which one of the following characteristics applies to oligopolistic markets?
A)There is a large number of firms.
B)The absence of barriers to entry of firms.
C)Firms are large relative to the size of the market.
D)All firms are price takers.
E)Firms produce identical products.

Question

Quizplus · Accepted Answer

In oligopolistic markets, there are only a few large firms that dominate the market. These firms have significant market power due to their size and influence on price. There are often barriers to entry, making it difficult for new competitors to enter the market and compete with the established firms. Additionally, firms in oligopolistic markets often engage in strategic behavior, such as price setting and advertising, in order to gain a competitive advantage over their rivals. Overall, the characteristics of oligopolistic markets are different from those of competitive markets, where there are many small firms producing identical products and no barriers to entry.

Which One of the Following Characteristics Applies to Oligopolistic Markets